Bankruptcy 101

[CrusaderFrank]

When a Company files bankruptcy it is seeking court ordered relief from its debts and obligation.

With me so far?

Filing bankruptcy does not mean the company stops all operations and disintegrates

Still there?

Bankruptcy allows a company a chance to reorganize their debt by reducing interest rate and getting more favorable terms and usually, they give something of value in return to the debtors.

Filing bankruptcy does not mean the company stop all operations and disintegrates

 

[del]

it does when the company filing seeks to liquidate its assets

thanks for stopping by

 

[Nova78]

Yea,sure thing Einstein.

 

[Luissa]

You do have a point.... But Hostess was going to close down operations, told retail stores they wouldn't be getting anymore shipments, and planned on selling off their recipes.

 

[CrusaderFrank]

it does when the company filing seeks to liquidate its assets

thanks for stopping by

That's a Liquidation bankruptcy, but the filing does not mean the company stops operation.

For example, GM filed for Chapter 11 which is Reorganization. Can you say "reorganization"?

Hostess Filed Chapter 11 as well, and what type is that?

That's right, a "reorganization"

thanks for stopping by and filling in for TM

 

[Toro]

I imagine someone will buy the Hostess brands.

 

[jillian]

When a Company files bankruptcy it is seeking court ordered relief from its debts and obligation.

With me so far?

Filing bankruptcy does not mean the company stops all operations and disintegrates

Still there?

Bankruptcy allows a company a chance to reorganize their debt by reducing interest rate and getting more favorable terms and usually, they give something of value in return to the debtors.

Filing bankruptcy does not mean the company stop all operations and disintegrates

it depends on what chapter of the bankruptcy law they use. different ramifications for each.

and it does mean, either way, that their creditors get screwed...
which causes more bankruptcies...

and when they lay off people... they end up in bankruptcies...

which further hurts creditors...

and causes further bankrtupcies.

50% of personal bankruptcies occur because of unanticipated medical expenses

 

[Luissa]

it does when the company filing seeks to liquidate its assets

thanks for stopping by

That's a Liquidation bankruptcy, but the filing does not mean the company stops operation.

For example, GM filed for Chapter 11 which is Reorganization. Can you say "reorganization"?

Hostess Filed Chapter 11 as well, and what type is that?

That's right, a "reorganization"

thanks for stopping by and filling in for TM

Then why did the company say they were going to go out of business? Maybe you should explain to the CEO what chapter 11 is.

"The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands if plants hadn't resumed normal operations by a Thursday evening deadline. The deadline passed without a deal."

""I don't know if they thought that was a bluff," CEO Gregory Rayburn said on CNBC Friday. He said the financial impact of the strike makes it "too late" to save the company even if workers have a change of heart. That's because the clients such as retailers decide to stop carrying products when supplies aren't adequate.

Rayburn said he's hopeful that the company will find buyers for its roster of about 30 brands, which include Ho Hos, Dolly Madison, Drake's and Nature's Pride snacks. The company books about $2.5 billion in sales a year."
http://m.courierpress.com/news/2012/nov/16/hostess-says-its-going-out-of-business-after/

 

[CrusaderFrank]

it does when the company filing seeks to liquidate its assets

thanks for stopping by

That's a Liquidation bankruptcy, but the filing does not mean the company stops operation.

For example, GM filed for Chapter 11 which is Reorganization. Can you say "reorganization"?

Hostess Filed Chapter 11 as well, and what type is that?

That's right, a "reorganization"

thanks for stopping by and filling in for TM

Then why did the company say they were going to go out of business? Maybe you should explain to the CEO what chapter 11 is.

"The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands if plants hadn't resumed normal operations by a Thursday evening deadline. The deadline passed without a deal."

""I don't know if they thought that was a bluff," CEO Gregory Rayburn said on CNBC Friday. He said the financial impact of the strike makes it "too late" to save the company even if workers have a change of heart. That's because the clients such as retailers decide to stop carrying products when supplies aren't adequate.

Rayburn said he's hopeful that the company will find buyers for its roster of about 30 brands, which include Ho Hos, Dolly Madison, Drake's and Nature's Pride snacks. The company books about $2.5 billion in sales a year."
Hostess says it's going out of business after crippling strike » Evansville Courier & Press Mobile

He had to change it to a liquidation when it became apparent that there was no hope of reorganization due to the Union strike

 

[Luissa]

That's a Liquidation bankruptcy, but the filing does not mean the company stops operation.

For example, GM filed for Chapter 11 which is Reorganization. Can you say "reorganization"?

Hostess Filed Chapter 11 as well, and what type is that?

That's right, a "reorganization"

thanks for stopping by and filling in for TM

Then why did the company say they were going to go out of business? Maybe you should explain to the CEO what chapter 11 is.

"The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands if plants hadn't resumed normal operations by a Thursday evening deadline. The deadline passed without a deal."

""I don't know if they thought that was a bluff," CEO Gregory Rayburn said on CNBC Friday. He said the financial impact of the strike makes it "too late" to save the company even if workers have a change of heart. That's because the clients such as retailers decide to stop carrying products when supplies aren't adequate.

Rayburn said he's hopeful that the company will find buyers for its roster of about 30 brands, which include Ho Hos, Dolly Madison, Drake's and Nature's Pride snacks. The company books about $2.5 billion in sales a year."
Hostess says it's going out of business after crippling strike » Evansville Courier & Press Mobile

He had to change it to a liquidation when it became apparent that there was no hope of reorganization due to the Union strike

So you created this thread for what reason?

I understand people don't understand what it means, I worked at Kmart when they filed. I won't talk about how many people asked me when we were going to have our closing sale.

 

[del]

That's a Liquidation bankruptcy, but the filing does not mean the company stops operation.

For example, GM filed for Chapter 11 which is Reorganization. Can you say "reorganization"?

Hostess Filed Chapter 11 as well, and what type is that?

That's right, a "reorganization"

thanks for stopping by and filling in for TM

Then why did the company say they were going to go out of business? Maybe you should explain to the CEO what chapter 11 is.

"The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands if plants hadn't resumed normal operations by a Thursday evening deadline. The deadline passed without a deal."

""I don't know if they thought that was a bluff," CEO Gregory Rayburn said on CNBC Friday. He said the financial impact of the strike makes it "too late" to save the company even if workers have a change of heart. That's because the clients such as retailers decide to stop carrying products when supplies aren't adequate.

Rayburn said he's hopeful that the company will find buyers for its roster of about 30 brands, which include Ho Hos, Dolly Madison, Drake's and Nature's Pride snacks. The company books about $2.5 billion in sales a year."
Hostess says it's going out of business after crippling strike » Evansville Courier & Press Mobile

He had to change it to a liquidation when it became apparent that there was no hope of reorganization due to the Union strike

maybe if they didn't raise each other's pay 300% for failing, they'd have a better shot at staying in business?

at any rate, it's always good to see frank where he belongs- on his knees

 

[waltky]

Judge gives okay to Hostess liquidation...

Twinkies firm Hostess Brands wins liquidation bid
21 November 2012 - Advisers to Hostess Brands said they had received much interest from potential buyers

A US bankruptcy judge has given the go-ahead for the liquidation of Hostess Brands, owner of some of the country's best known food brands, including cream-filled sponge snack Twinkies. The hearing was delayed from Monday to allow for last-ditch talks with unions, but those failed. As a first step in the liquidation of the company, Hostess is expected to lay off about 15,000 of its employees.

But Hostess' advisers are confident that parts of the business can be sold. In a statement, the company blamed the need for liquidation on a strike by the Bakery, Confectionery, Tobacco and Grain Millers (BCTGM) union, which started on 9 November. Hostess Brands had sought protection from its creditors through Chapter 11 bankruptcy in January, but said it could not afford to continue operating through a strike.

The BCTGM blamed the company's problems on years of mismanagement and being saddled with debt by private equity owners. But Hostess said: "The wind-down was necessitated by an inflated cost structure that put the company at a profound competitive disadvantage", adding that the main problem was its collective bargaining agreements with its staff.

'Iconic brands'